๐ณ๐ฌ Tax Overview โ Nigeria
Corporate tax, VAT/GST, and key tax information for businesses operating in Nigeria.
Tax Treatment by Structure
Private Company Limited by Shares (Ltd)
Nigeria applies tiered corporate income tax: 30% for large companies (turnover > NGN 100 million), 20% for medium companies (NGN 25โ100 million turnover), and 0% for small companies (turnover < NGN 25 million). An additional tertiary education tax of 2.5% of assessable profits applies. VAT is 7.5% on most goods and services. Withholding tax of 10% on dividends, interest, royalties, and management fees paid to non-residents. Companies in pioneer industries may qualify for a 3โ5 year tax holiday. Free zone entities in approved zones pay 0% corporate tax on export-oriented activities.
Company Limited by Guarantee (GTE)
GTEs operating for charitable, educational, or religious purposes may apply for tax exemption under Section 23 of the Companies Income Tax Act. If approved, the entity pays no corporate income tax on income applied to its stated objects. GTEs that engage in commercial activities beyond their stated objects may lose the exemption and become subject to standard corporate tax rates.
This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.